Weir to acquire Micromine for £657m to strengthen digital mining solutions

Weir has entered into a definitive agreement to acquire Mining Software Holdings Pty Ltd (Micromine) for £657 million (A$1.31 billion) in a move that underscores the company’s commitment to expanding its digital mining strategy. Micromine, a Perth-based global leader in mining software solutions, provides a suite of AI-driven mining solutions that streamline processes from exploration to mine design, operational scheduling, and production management.

The deal, expected to close in the second quarter of 2025, is set to position Weir as a frontrunner in the rapidly evolving digital mining sector. By integrating Micromine’s AI-powered mining solutions with its existing MOTION METRICS and NEXT intelligent solutions, Weir aims to create a sector-leading digital optimisation platform that enhances productivity and sustainability.

What Does Micromine Bring to Weir’s Digital Mining Portfolio?

Micromine has established itself as a top-tier provider of mining software solutions, catering to both open-pit and underground mining operations. Its technology supports the entire mining lifecycle, enabling companies to make data-driven decisions that improve efficiency and reduce operational costs. The company’s expertise in AI-driven mining solutions has made it a preferred choice for miners looking to optimise resource planning, extraction, and processing activities.

With 90% of its revenue derived from SaaS subscriptions, Micromine offers a high-margin, recurring revenue model that aligns well with Weir’s strategy of expanding its digital ecosystem. This acquisition will provide Weir with immediate access to a scalable, high-growth digital platform, which is expected to accelerate global adoption of mining automation and AI technologies.

How Will This Deal Drive Growth for Weir?

The acquisition is expected to deliver financial and strategic benefits for Weir by bolstering its revenue streams and enhancing its position as a leader in mining technology. Micromine has recorded a compound annual growth rate (CAGR) of 25% over recent years, with projected 2025 revenues of approximately £68 million. This growth is largely attributed to the increasing adoption of mining software solutions designed to drive operational efficiency.

Weir anticipates that the integration of AI-driven mining solutions will contribute to higher operating margins and improved cash flow generation. The transaction is expected to be EPS accretive in its first full year and to enhance Weir’s ability to deliver digital transformation in mining.

What Are the Financial Details and Funding Strategy?

Weir will finance the acquisition using a combination of existing cash reserves and new debt facilities. As of December 31, 2024, the company reported net debt of £535 million, with a net debt-to-EBITDA ratio of 0.7x. Post-acquisition, this ratio is expected to remain below 2.0x by December 2025 and decline to below 1.5x by the end of 2026, ensuring that Weir maintains a disciplined capital structure while expanding its digital footprint.

The deal values Micromine at approximately 10 times its estimated December 2025 revenue and 20 times its EBITDA, excluding synergies. This valuation reflects the strong growth potential of AI-driven mining solutions, as the industry increasingly adopts automation and data-driven technologies to improve efficiency and reduce environmental impact.

What Does This Mean for the Future of Digital Mining?

The mining industry is undergoing a rapid digital transformation, with companies prioritising automation, AI, and predictive analytics to enhance operational efficiency. The integration of Micromine’s AI-powered mining solutions with Weir’s existing digital platforms will enable mining operators to gain real-time insights into resource utilisation, equipment performance, and environmental impact.

Weir plans to leverage Micromine’s global presence to accelerate the adoption of advanced mining software solutions across its established customer base. The acquisition aligns with Weir’s broader strategy of becoming an end-to-end digital leader in the mining industry, providing customers with cutting-edge tools for process optimisation and sustainability.

How Will Micromine Be Integrated into Weir’s Business?

Following the completion of the acquisition, Micromine will initially operate independently under Weir’s ESCO Division, ensuring continuity for its existing customers and ongoing projects. Over time, Weir intends to integrate Micromine’s software solutions with its MOTION METRICS and NEXT intelligent solutions, creating a unified digital optimisation platform for the mining sector.

Weir is focused on ensuring a smooth transition, with leadership continuity in place to facilitate the integration process. The company aims to harness Micromine’s domain expertise and technological capabilities while aligning the business with Weir’s long-term digital growth strategy.

What Is the Market Outlook for Weir After This Acquisition?

Weir’s expansion into mining software solutions is expected to enhance its competitive edge in an industry that is increasingly reliant on automation and digital optimisation. Investors have responded positively to the deal, recognising the long-term value of integrating AI-driven mining solutions with Weir’s existing engineering expertise.

The global demand for mining automation and digitalisation is projected to rise, driven by factors such as increasing regulatory requirements, sustainability goals, and cost-efficiency measures. By acquiring Micromine, Weir is positioning itself as a dominant player in mining technology, with a comprehensive suite of digital solutions tailored to the evolving needs of the industry.

With the acquisition expected to close in Q2 2025, pending regulatory approvals from Australia’s Foreign Investment Review Board (FIRB), Weir is set to take a significant step toward shaping the future of digital mining.